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HB 304: "An Act relating to geographic differentials for the salaries of certain state employees who are not members of a collective bargaining unit; relating to periodic salary surveys and preparation of an annual pay schedule regarding certain state employees; relating to certain state aid calculations based on geographic differentials for state employee salaries; and providing for an effective date."

00HOUSE BILL NO. 304 01 "An Act relating to geographic differentials for the salaries of certain state 02 employees who are not members of a collective bargaining unit; relating to 03 periodic salary surveys and preparation of an annual pay schedule regarding 04 certain state employees; relating to certain state aid calculations based on 05 geographic differentials for state employee salaries; and providing for an effective 06 date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 22.15.220(b) is amended to read: 09  (b) Each magistrate shall receive annual compensation to be determined by the 10 supreme court. Salary increases shall be determined on the basis of percentage of pay 11 increase the legislature provides for state employees in the classified service. The base 12 salary of a magistrate shall be increased by a percentage equal to three and one-half 13 percent times the number of step increases provided under former AS 39.27.020 that 14 a state employee would receive working in the same election district. A magistrate's

01 annual compensation may be payable, at the option of the magistrate, either monthly 02 in 12 equal installments or semi-monthly in 24 equal installments. 03 * Sec. 2. AS 29.60.160(a) is amended to read: 04  (a) Payments to a municipality or other eligible recipient under AS 29.60.110 - 05 29.60.130 shall reflect area cost-of-living differentials. Payments shall be based on the 06 sum of per capita, per mile, and per bed or facility grants due each municipality or 07 other recipient multiplied by the appropriate area cost-of-living differential. The area 08 cost-of-living differential for each recipient shall be determined [ANNUALLY BY 09 ELECTION DISTRICT] under the provisions of former AS 39.27.020 and former 10 AS 39.27.030. Application of the area cost-of-living differential may not result in 11 distribution of an amount less than the amount of the payment determined without 12 reference to application of this section. 13 * Sec. 3. AS 29.60.290(b) is amended to read: 14  (b) The area cost-of-living differential payable to each municipality under this 15 section shall be determined [ANNUALLY BY ELECTION DISTRICT] under the 16 provisions of former AS 39.27.020 and former AS 39.27.030. Except as provided 17 in AS 29.60.300, application of the area cost-of-living differential may not result in a 18 payment that is less than the minimum payment determined under (a) of this section. 19 For purposes of this subsection, the election districts used are those designated by the 20 proclamation of reapportionment and redistricting of December 7, 1961, and retained 21 for the house of representatives by proclamation of the governor September 3, 1965. 22 * Sec. 4. AS 39.27 is amended by adding a new section to read: 23  Sec. 39.27.021. PAY DIFFERENTIALS. (a) The following pay differentials 24 are approved as an amendment to the basic salary schedule in AS 39.27.011: 25  Geographic Area Percentage Above 26 (Election Districts) Basic Salary Schedule 27 3, 4, and 7 - 33  0 28  1, 2, 5, and 6 5 29  34, 35, and 3610 30  37 - 40 20 31  Washington State 0

01  (b) A pay differential authorized by (a) of this section applies only to that part 02 of an employee's gross salary that does not exceed $30,000 annually, prorated by pay 03 period. 04  (c) For purposes of (a) of this section, "election district" means an election 05 district designated in the governor's proclamation of reapportionment and redistricting 06 applicable to the 1994 general election. 07  (d) The director may establish salary differentials for positions in foreign 08 countries or in states other than the State of Washington, which must be adjusted as 09 necessary to maintain equitable relationships between salaries for positions outside 10 Alaska and in Alaska. 11 * Sec. 5. AS 39.27 is amended by adding a new section to read: 12  Sec. 39.27.031. COST-OF-LIVING SURVEY. Subject to an appropriation for 13 this purpose, the director shall conduct a survey, at least every five years, to review 14 the pay differentials established in AS 39.27.021. The survey may address factors, as 15 determined by the director, that are also relevant in review of state salary schedules, 16 entitlement for beneficiaries of state programs, and payments for state service 17 providers. The survey must reflect the costs of living in various election districts of 18 the state, and Seattle, Washington, by using the cost of living in Anchorage as a base. 19 * Sec. 6. AS 39.35.675(d) is amended to read: 20  (d) In this section "cost-of-living differential" means an adjustment to salary 21 based on the cost of living in the geographic region where the employee works and 22 includes a pay step differential under former AS 39.27.020 or under AS 39.27.021. 23 * Sec. 7. AS 39.27.020, 39.27.030, 39.27.035, and 39.27.040 are repealed. 24 * Sec. 8. LIMITATION ON THE REDUCTION OF EMPLOYEE SALARIES. (a) The 25 salary that an employee is receiving on July 1, 1995 may not be reduced by application of a 26 provision of this Act until July 1, 1996, so long as the employee remains in the same 27 geographic area, as defined in AS 39.27.021(a) and (c), as enacted by sec. 4 of this Act. 28 (b) If an employee moves to another geographic area after July 1, 1995, both the pay 29 differential in AS 39.27.021(a), enacted by sec. 4 of this Act, and the limitation on applicable 30 salary in AS 39.27.021(b), enacted by sec. 4 of this Act, apply to that employee's salary on 31 the effective date of the move.

01 (c) Nothing in this Act prohibits a reduction in an employee's salary as a result of a 02 voluntary or involuntary demotion. 03 * Sec. 9. Nothing in this Act modifies or terminates the terms of a collective bargaining 04 agreement in effect on July 1, 1995. 05 * Sec. 10. Section 8 of this Act is repealed July 1, 1996. 06 * Sec. 11. This Act takes effect July 1, 1995.